Serenity: Meta did not cut capital expenditures due to "overbuilding"; current computing power remains limited

Odaily reported that "White-haired Stock God" Serenity stated on the X platform that there is a lot of misleading information regarding Meta cutting capital expenditure due to "overbuilding." Meta only sells computing power when there is excess capacity, but the current situation seems to be the opposite. 

Hyperscalers such as Google previously reduced their allocation of computing power to Meta in March due to capacity limitations, as internal Meta projects consumed too many resources. Meta immediately faced constraints on computing power and was forced to sign massive contracts worth over 48 billion dollars with neoclouds such as CoreWeave and Nebius.

Meta only sells computing power in situations of excess capacity, especially since most of its large contracts with neoclouds are take-or-pay agreements. Serenity expects Meta's guidance for capital expenditure to increase, as it is building more independent capacity.